Which of the following would increase output in the short run?
A)an increase in stock prices makes people feel wealthier
B)government spending increases
C)firms chose to purchase more investment goods
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the above options can increase output in the short run. A increase in stock prices can lead to greater consumer confidence and spending, leading to an increase in demand for goods and services. An increase in government spending can directly increase demand for goods and services, providing a short-term boost to the economy. More purchases of investment goods by firms usually indicate an increase in production capacity, which can lead to greater output in the short run.

Which of the Following Would Increase Output in the Short